The supply of silicon wafers has fallen short of demand since the beginning of 2017, according to industry sources. China-based foundry startups' aggressive expansions, as well as the arrival of new production capacities at Intel, TSMC and other major foundries, led to the tight supply of silicon wafers mainly 12- and 8-inch ones, the sources indicated.

Silicon wafer quotes already rose 15-20% in 2017 as a result of tight supply, said the sources, adding that prices are likely to increase further by at least 20% in 2018 to reflect the ongoing tight supply. The price rally will continue to boost silicon wafer providers' revenues and profitability.